Justia Real Estate & Property Law Opinion Summaries

The Supreme Court denied Petitioner's petition for a writ of mandamus challenging the final approval of the settlement in the underlying class action against the State, holding that Petitioner had no right to compensation.In 1920, the federal government pledged land to native Hawaiian beneficiaries, and while Hawai'i held the homestead land in trust it breached its fiduciary duties. In the underlying class action, trust beneficiaries successfully sued the State for breach of its trustee responsibilities, and the State settled. The Supreme Court accepted a petition for a writ of mandamus, an appeal challenging final approval of the case's settlement, and held (1) because Petitioner was born beyond the statutory period to receive a payout from the settlement he had no right to compensation; and (2) because this decision ended Petitioner's appeal, the appeal before the intermediate court of appeals was moot. View "Rivera v. Honorable Cataldo" on Justia Law

The Supreme Court affirmed the judgment of the intermediate court of appeals (ICA) ruling that the circuit court did not err in ordering an appointed commissioner to take possession and collect rents and during the period between summary judgment and confirmation of sale in this foreclosure case.The Association of Apartment Owners of Elima Lani Condominiums (AOAO) foreclosed on the previous owners of a condominium based on delinquent assessments and then PHH Mortgage Corporation, the mortgage lender, foreclosed on AOAO. AOAO appealed, arguing that the circuit court erred when it ordered that AOAO's possessory interest and right to collect rent from the property was extinguished upon entry of the foreclosure decree and erred when it vested the commissioner with legal and equitable title to the foreclosed property prior to the confirmation of sale. The ICA affirmed. The Supreme Court affirmed, holding that because the commissioner did not collect any rents, the ICA correctly held that the circuit court did not err in ordering the Commissioner to take possession and collect rents, and there were no rents to allocate under Haw. Rev. Stat. 514B-146(n). View "PHH Mortgage Corp. v. Patterson" on Justia Law

After recording a notice of default and intention to foreclose for unpaid assessments and costs, AOAO, a homeowners’ association, acquired the property by quitclaim deed in July 2015 after a non-judicial foreclosure sale. In September 2017, MTGLQ filed a complaint for foreclosure of the property and moved for summary judgment and an interlocutory decree of foreclosure, asking that a commissioner be appointed to take possession of the property, rent it out, and sell it. AOAO objected to MTGLQ’s request for possession and rents, arguing that Hawai͑i Revised Statutes 514B-146(n) referenced “any excess rental income received by the association” after a bank foreclosure, which meant the statute “clearly contemplated” that the association would continue in possession and collect rents. The court granted MTGLQ’s requests. In a January 2020 report, the Commissioner stated that he had conducted a public auction of the property and had collected $3,275.00 in rent for three months in 2019. The court confirmed the sale and awarded the rent to MTGLQ.The Supreme Court of Hawaii vacated the allocation of rent. Although AOAO’s right to rent and possession was terminated by the foreclosure judgment, section 514B-146(n) entitles it to the subsequent income to the extent that it has not already recouped its losses through rent previously collected. View "MTGLQ Investors, L.P. v. Association of Apartment Owners of Elima Lani Condominiums " on Justia Law

The Supreme Court reversed the judgment of the circuit court denying Appellant's Haw. R. Civ. P. 60(b)(6) motion for relief from a judgment of foreclosure, holding that the lender, James B. Nutter Company (JBNC), committed fraud on the court and that the balance of equities weighed against foreclosure.JBNC brought the underlying foreclosure proceeding against Appellant for allegedly defaulting in the observance and performance of the terms, covenants and conditions of his mortgage by failing to make $500 worth of repairs. The circuit court granted JBNC's motion for summary judgment and decree of foreclosure, after which Appellant brought this motion for relief. The circuit court denied relief. The intermediate court of appeals (ICA) affirmed. The Supreme Court reversed, holding that there were grounds for relief both on a fraud on the court theory and under the equitable principles governing foreclosure. View "James B. Nutter & Co. v. Namahoe" on Justia Law

The Supreme Court vacated the judgment of the intermediate court of appeals (ICA) holding that a plaintiff may not recover attorneys' fees under the private attorney general (PAG) doctrine from a private defendant even where the State voluntarily participated as a co-litigant in the case, holding that the ICA erred.Petitioners prevailed against Defendant Haleakala Ranch Company (HRC) in procuring the circuit court's judgment that the State of Hawai'i and not HRC owned a portion of the Haleakala Trail that ran over HRC's property. At issue before the Supreme Court was Petitioners' attempt to recover attorneys' fees from HRC under the PAG doctrine. The Supreme Court held (1) plaintiffs who recover attorneys' fees and costs under the PAG doctrine may also recover fees and costs reasonably incurred in litigating their initial claim for fees; and (2) a plaintiff may recover attorneys' fees under the PAG doctrine from a private defendant where the State voluntarily participated as a co-litigant in the case. View "Public Access Trails Haw. v. Haleakala Ranch Co." on Justia Law

In this case challenging the constitutionality of administrative rules governing access to Mauna Kea's summit under Haw. Const. art XII, 7, the Supreme Court answered questions reserved by the Circuit Court of the Third Circuit by holding (1) in a challenge to the constitutionality of administrative rules based on a violation of Haw. Const. art. XII, 7, the burden of proof does not shift to the government agency defendant and instead remains with the challenging party; and (2) the framework set forth in Ka Pa'akai O Ka'Aina v. Land Use Comm'n, 7 P.3d 1068 (Haw. 2000), applies to challenges to the constitutionality of an administrative rule based on an alleged violation of article XII, section 7, in addition to contested case hearings. View "Flores-Case 'Ohana v. University of Haw." on Justia Law

The Supreme Court affirmed the order of the Land Use Commission (LUC) denying Petitioners' petition for a declaratory order challenging the construction of the Thirty Meter Telescope (TMT), holding that Haw. Rev. Stat. 205-2(e) does not authorize the Commission to exclude or enforce certain land uses within conservation districts.Petitioners in this case sought to use the LUC's districting authority in a manner that would compel the removal of all astronomy facilities located within the Astronomy Precinct. The LUC denied the petition, and Petitioners appealed. The Supreme Court affirmed, holding (1) this Court had jurisdiction to directly review Petitioners' appeal; (2) the LUC correctly determined that it lacked jurisdiction to issue the requested declaratory orders; and (3) Petitioners were not entitled to relief on their remaining claims of error. View "In re Petition of Ku'ulei Higashi Kanahele" on Justia Law

In this foreclosure dispute, the Supreme Court held that Haw. Rev. Stat. 514B-146(n) provides a scheme for distributing rents following a lender's foreclosure against an association and that the Association of Apartment Owners of Elima Lani Condominiums (AOAO) may be entitled to all or some of the rent collected for Nationstar Mortgage, LLC in this case.AOAO foreclosed an a unit owned by Thomas and Sarah David for failure to pay common assessments. Thereafter, Nationstar filed a complaint for foreclosure of the Davids' unit, alleging that the Davids had defaulted on their mortgage. The circuit court entered summary judgment and a decree of foreclosure in favor of Nationstar after AOAO came into possession of the unit. Nearly eleven months later after the foreclosure sale of the unit, the circuit court confirmed the foreclosure sale. Before the Supreme Court was whether AOAO was entitled to rents that accrued from the unit during the period between summary judgment and the confirmation of sale. The Supreme Court vacated the circuit court's judgment to the extent it awarded post-foreclosure rents to Nationstar and remanded for a calculation of the amount AOAO was owed from post-foreclosure units, holding that AOAO may be entitled to all or some of the rent collected for Nationstar after summary judgment. View "Nationstar Mortgage, LLC v. Ass'n of Apartment Owners of Elima Lani Condominiums" on Justia Law

The Supreme Court overruled Maha-ulepu v. Land Use Commission, 790 P.2d 906 (1990), superseded by statute, 2005 Haw. Less. Laws Act 205, 2-3 at 669-71, which held that a use not permitted under Haw. Rev. Stat. 205-4.5(a)(6) could be authorized by special use permit, holding that it was incorrectly decided.At issue was Ho'omoana Foundation's proposed overnight campground development for unhoused and commercial campers on Class B land in an agricultural district in Maui could be authorized by special use permit or whether a district boundary amendment was required. The Supreme Court held (1) the specific exclusion of overnight camps from permitted uses in Haw. Rev. Stat. 205-4.5(a)(6) sets forth that the public and private recreation use of overnight camps is not permitted in Class A and B land in agricultural districts and cannot be permitted by special use permits; (2) Maha'ulepu is overruled; and (3) because the proposed campground project included a public or private recreational overnight camp use, the project required a district boundary amendment. View "Ho'omoana Foundation v. Land Use Comm'n" on Justia Law

In this foreclosure proceeding, the Supreme Court vacated the judgment of the intermediate court of appeals (ICA) affirming the circuit court's order granting Deutsche Bank's motion for summary judgment on its complaint to foreclose a mortgage, holding that Deutsche Bank did not establish that it had standing to foreclose.In 2006, Blaine Yata executed a note and mortgage to New Century Mortgage Corporation. The mortgage was later assigned to Deutsche Bank National Trust Company, as trustee for Morgan Stanley ABS Capital I Inc. Trust 2006-NC4 (Deutsche Bank). When Yata defaulted on the note, Deutsche Bank brought a complaint to foreclose on the mortgage. The circuit court granted summary judgment for Deutsche Bank. The ICA affirmed. The Supreme Court vacated the ICA's judgment on appeal, holding (1) the ICA misapplied U.S. Bank Trust, N.A. v Verhagen, 489 P.3d at 419 (2021) in determining that Deutsche Bank's documents were admissible; and (2) even if the documents were admissible, they would not establish that Deutsche Bank had possession of the note when it filed the complaint. View "Deutsche Bank National Trust Co. v. Yata" on Justia Law